Coles profit hit by underpayment scandal

Updated August 25, 2026 — 9:58am,first published 9:10amColes grew total sales by 2.8 per cent to $45.6 billion, with supermarket sales revenue growing 5.1 per cent.The supermarket’s profit of $1.09 billion was hit by a provision of $235 million that had been set aside after the Federal Court last year found Australia’s biggest supermarkets failed to keep accurate records of staff. Excluding this, net profit lifted 13.7 per cent to $1.255 billion.Coles chief executive Leah Weckert said the supermarket delivered another set of consistent results for the 2026 financial year.Eamon GallagherColes chief executive Leah Weckert said the supermarket delivered another set of consistent results for the 2026 financial year.“This performance is particularly pleasing given the challenging operating environment, including continued cost-of-living pressures, geopolitical uncertainty and greater regulatory complexity,” she said.Supermarket prices grew 1.5 per cent over the year, with cost increases in fuel, meat and dairy partially offset by deflation across fresh produce and eggs.Coles’ private-label products grew 6.1 per cent, led by the Coles Finest range, which increased more than 9 per cent.The supermarket called out liquor sales, which declined by 3.3 per cent amid ongoing cost of living pressures, consumer reluctance to spend, and heavy discounting, as coming in below expectations.“We have completed a strategic review of the business and are now executing a program to improve the financial performance by creating a more integrated food and drink proposition, optimising the store network and simplifying the operating model,” the company said in its announcement.The grocery giant is declaring a final fully franked dividend of 78 cents per share, an increase of 13 per cent on the dividend paid last year.More to comeThe Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.From our partners